In a statement, the company said it is laying the groundwork for the third phase of its strategic plan, under which it will attempt to strengthen its market position further and develop more globally diversified operations.

As part of that effort, it is conducting a feasibility study on expanding operations in the U.S., where there is increasing demand from manufacturing and defense sectors for locally produced, sustainable stainless steel. Expanded operations could include an increase to its existing cold rolling capacity and a hot rolling mill. 

But a hot mill remains in the future. Outokumpu contracts out its hot rolling and is required to give 36-months’ notice if it were to decide to end the agreement. Therefore, the earliest the agreement could be terminated would be 1 October 2026, it said. 

Either way, Outokumpu said it is now in a much better position to make these sorts of decisions about its Americas operations as it has significantly improved its operational performance and its ability to generate profit here. 

“We have successfully turned around our business in the U.S. in recent years and our profitability has improved significantly,” said Outokumpu chief executive officer Heikki Malinen. 

“We are committed to the U.S. and broader North American markets for the long term and are exploring options as we seek to increase the capacity in our Calvert mill in Alabama. As the U.S.’s second-largest stainless steel producer, our goal is to find the best possible solution to achieve our commercial ambitions in North America,” Malinen said.